Salesforce, the world’s leading AI CRM, recently shared its groundbreaking 2024 holiday retail insights. Despite record-setting sales globally and in the U.S., rising return rates could pose challenges for profit margins. In this blog, we explore key trends that defined the 2024 holiday season, including the impact of AI and agents on sales, the surge in mobile and social commerce, and the growing concerns around returns.

Key Trends Impacting the 2024 Holiday Shopping Season

1. Record-Breaking Online Sales

• Global online sales reached a historic $1.2 trillion, with $282 billion generated in the U.S.
• Sales grew by 3% globally and 4% in the U.S. YoY.
• The European Union saw a 1% YoY increase in online sales.

2. The Power of AI and Agents

• AI and agents influenced $229 billion in global online sales (19% of all online orders).
• AI-driven product recommendations, personalized offers, and conversational support boosted customer engagement.
• Retailers’ use of AI grew by 25% during the holiday season, with 42% more shoppers using AI-powered chat for customer service.

3. The Rising Challenge of Returns

• $122 billion worth of global purchases were returned, a 28% increase YoY.
• The surge in returns is driven by behaviors like “try-on hauls” and bracketing.
• Salesforce anticipates returns will rise to $133 billion, emphasizing the importance of AI tools to streamline the returns process.

4. Social Commerce Takes Center Stage

• Social commerce generated 20% of global holiday sales through platforms like TikTok Shop and Instagram.
• Social media traffic referring to eCommerce sites grew by 8% YoY, contributing to 14% of all traffic.

5. Mobile Commerce on the Rise

• 79% of global traffic came from mobile devices, with nearly 70% of orders placed on mobile.
• Christmas Day saw mobile orders reach their highest at 79% of all global sales.
• 79% of U.S. shoppers reported using mobile devices for in-store assistance.

6. Modest Discounts and Growing Loyalty

• Average discounts were modest, at 23% in the U.S. and 22% globally.
• Makeup, apparel, and skincare saw the highest discount rates.
• 72% of U.S. shoppers said loyalty programs encouraged repeat purchases.

The 2024 holiday season was marked by significant growth in online sales and mobile commerce, with AI and agents playing a pivotal role in enhancing customer experiences. However, the rise in returns poses challenges for retailers in maintaining healthy profit margins. As the year unfolds, the data suggests that AI and loyalty programs will be key in driving growth and managing these hurdles.